How you can make a good trading plan for yourself
If you want to succeed in trading then is a must for you to have solid trading plans that will guide you through trading the crypto market.
Without you have a trading plan everything would be as if you are just chasing a shadow or following others in the market. A trading plan is not just about your entry price, taking profit, or stopping loss, but it is more than this which has been shared in this post.
As a trader for the coming month or year 2024, you may have set out your trading framework, by creating your goal or mapping out your target for trading during the next coming month or year. The question is if you have done all this and many more, do you think you have sincerely made a good reason plan for yourself?
A good trading plan is what prepares you for any outcomes. Having said this the four things that should make your trading plan good are when you have added four tips which are shared below for your plans
How you will analyze the market and identify entry and exit prices (setup)
How you will calculate your position
How you intend to control your emotions
How you will execute your position.
- How you will analyze the market and identify entry and exit price (setup)
When strateging your trading plan it is good you write down the indicators you will be using to analyze the market. For example, looking at the screenshot below you will see that it is the Fibonacci extension indicator that is applied on the chart.
Tradingview
Main looking at the above chart, you will see that the indicator that is applied has helped me as a trader to identify my setup in the market. From the chart, everything is clear I even got to see the support level and the resistance level. What this means is that when make your plans ensure you make use of the indicators you understand better.
- How you will calculate your position
Every trading that we enter has a fixed amount of capital that is used to open the trade. All fingers aren't equal, to those who have money their usually their capital is huge.
However, let's for example you have a trading capital of $5,000 and in your trading plan you have stated your risk to be 1% which means out of the $5,000 that you have you have agreed to lose $50. This will help you to manage your stop loss and take profits.
- How you intend to control your emotions
In trading, if you are the type of person who finds it difficult to control emotions when your trade begins going against you, you may lose more at the end of the day. Don't be too emotional to win or to lose, instead fill your mind with positive vibes.
Conclusion.
To succeed we need to plan which is why you need a good trading plan that will guide you to succeed in your trading. Without a good trading plan, it would be as if you were in the market to chase a shadow. This post is for educational purposes and not investment advice.
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This is an interesting post telling us how we can make good trading plan for ourselves.
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